Army Awards $94M+ Contract for Biomedical Research to Ligocyte Pharmaceuticals

Contract Overview

Contract Amount: $12,187,912 ($12.2M)

Contractor: Takeda Vaccines Inc

Awarding Agency: Department of Defense

Start Date: 2001-06-15

End Date: 2005-12-31

Contract Duration: 1,660 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200112!001008!2100!MD17 !US ARMY MEDICAL RESEARCH ACQ ACT!DAMD1701C0040 !A!N!*!N! !20010615!20070531!942922956!942922956!942922956!N!LIGOCYTE PHARMACEUTICALS, INC !920 TECHNOLOGY BLVD !BOZEMAN !MT!59718!08950!031!30!BOZEMAN !GALLATIN !MONTANA !+000001363000!N!N!000000000000!AN11!RDTE/BIOMEDICAL - BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!U!2!001!A! !Z!N!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: BOZEMAN, GALLATIN County, MONTANA, 59718

State: Montana Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to TAKEDA VACCINES INC for work described as: 200112!001008!2100!MD17 !US ARMY MEDICAL RESEARCH ACQ ACT!DAMD1701C0040 !A!N!*!N! !20010615!20070531!942922956!942922956!942922956!N!LIGOCYTE PHARMACEUTICALS, INC !920 TECHNOLOGY BLVD !BOZEMAN !MT!59718!08950!031!30!BOZEMAN !GALLA… Key points: 1. The contract, valued at over $94 million, supports biomedical research. 2. Competition was full and open, indicating a competitive bidding process. 3. The contract carries a risk of potential cost overruns due to its cost-plus-fixed-fee structure. 4. The sector is Research and Development, specifically in Biomedical Sciences.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs than fixed-price contracts if not managed carefully. The total value is substantial, suggesting significant research scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the cost-plus-fixed-fee structure still introduces some cost uncertainty.

Taxpayer Impact: Taxpayer funds are being used for critical biomedical research, with the potential for cost efficiencies through competitive bidding, but also the risk of increased costs inherent in cost-plus contracts.

Public Impact

Advancement of biomedical research potentially leading to new medical treatments or technologies. Investment in scientific innovation within the United States. Potential for improved public health outcomes through research findings.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Cost-plus-fixed-fee contract type can lead to cost overruns.
Long contract duration (1660 days) increases exposure to changing research needs and economic conditions.
Specific research outcomes are not guaranteed, representing a scientific risk.

Positive Signals

Full and open competition suggests a fair market price was likely achieved.
Contract supports critical R&D in the biomedical sector.
Awarded to a specific company, indicating focused expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on Biomedical Basic Research. Spending in this area is crucial for scientific advancement but can be subject to long timelines and uncertain outcomes.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring research milestones are met and funds are used appropriately.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost-plus-fixed-fee contract type.
Long contract duration.
Uncertainty of research outcomes.
Potential for scope creep.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to TAKEDA VACCINES INC. 200112!001008!2100!MD17 !US ARMY MEDICAL RESEARCH ACQ ACT!DAMD1701C0040 !A!N!*!N! !20010615!20070531!942922956!942922956!942922956!N!LIGOCYTE PHARMACEUTICALS, INC !920 TECHNOLOGY BLVD !BOZEMAN !MT!59718!08950!031!30!BOZEMAN !GALLATIN !MONTANA !+000001363000!N!N!000000000000!AN11!RDTE/BIOMEDICAL - BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is TAKEDA VACCINES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2001-06-15. End: 2005-12-31.

What specific biomedical research areas are being funded by this contract, and what are the expected deliverables?

The contract specifies 'RDTE/BIOMEDICAL - BASIC RESEARCH' and 'Research and Development in the Physical, Engineering, and Life Sciences'. Specific deliverables are not detailed in the provided data but would typically include research reports, data analysis, and potentially prototypes or findings related to the research objectives.

What are the primary risks associated with a Cost Plus Fixed Fee contract for basic research?

The primary risks include potential cost overruns if the research proves more complex or expensive than initially estimated, and the fixed fee might not adequately compensate the contractor for unforeseen challenges. There's also the risk that the research may not yield the desired scientific breakthroughs, impacting the overall value for money.

How does the full and open competition impact the overall effectiveness and value of this research contract?

Full and open competition generally enhances effectiveness and value by ensuring a wide range of qualified bidders can propose solutions, driving down costs and fostering innovation. It increases the likelihood that the government secures the best possible research capabilities at a competitive price, maximizing the return on taxpayer investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 920 TECHNOLOGY BLVD, BOZEMAN, MT, 01

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline